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An Economic Valuation on the External Cost of Alternative Milk Packaging

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  • Neill, Clinton L.
  • Williams, Ryan B.

Abstract

This paper investigates the degree to which glass bottled milk is an environmentally friendly alternative. A recent life cycle assessment for fluid milk packaging alternatives is utilized to quantify the environmental costs associated with each packaging type. We conduct a sensitivity analysis to identify the return and reuse rates under which the glass bottle has a lower environmental impact than the alternatives. With eight reuses and 95 percent return rate, glass bottled milk has a lower environmental cost than the alternatives. Twelve reuses and a 100 percent return rate is necessary for glass packaging to have the lowest social cost.

Suggested Citation

  • Neill, Clinton L. & Williams, Ryan B., 2015. "An Economic Valuation on the External Cost of Alternative Milk Packaging," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-13, November.
    • Handle: RePEc:ags:jlofdr:212991
    DOI: 10.22004/ag.econ.212991
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    References listed on IDEAS

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    1. Ackerman, Frank & Stanton, Elizabeth A., 2012. "Climate risks and carbon prices: Revising the social cost of carbon," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 6, pages 1-25.
    2. Fischer, Martin L. & Hammond, Jerome W., 1978. "Costs and Impacts of Alternative Milk Packaging Systems," Economic Reports 8444, University of Minnesota, Department of Applied Economics.
    3. Loureiro, Maria L. & Hine, Susan, 2002. "Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, and GMO-Free Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(3), pages 477-487, December.
    4. David Anthoff & Richard Tol, 2013. "Erratum to: The uncertainty about the social cost of carbon: A decomposition analysis using fund," Climatic Change, Springer, vol. 121(2), pages 413-413, November.
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